Kochi is majorly known to be a port city in the state of Kerala that lies on the Southwest coast of the country. This city is visited by an increasing number of tourists every year.
The one sector that is booming in this city is the information technology sector. This is because of the many investments that are done here. Hence, it has the title of “Smart City” under its belt.
Also known as Cochin, this city has a lot of other industries too. Some of those include HMT, Kinfra Hi-Tech, and Cyber City. These are joined by a few major chemical industries as well as some electrical industries. Kochi city is also home to the International Pepper Exchange, and Cochin Stock Exchange.
Kochi is a city with a developing industrial sector. This involves the many educational, Medicinal, and cultural sectors too. And since there are several enterprises witnessing significant growth, it is only fair that they get a chance towards developing with all the required resources. Such resources can be business loans or could be acquired via Business Loans.
What Purposes Are Business Loans In Kochi Good For?
In the city of Kochi, business loans can come in handy for various different reasons. The most common of them include the following:
- Expansion Of The Business Or Its Operations – The business expansions or the expansion of operations of a business usually take up way more capital. Such investments call for the need for outside resources. These resources are business loans that can help a great deal in bringing the future plans for your business to fruition.
- Purchasing Of Equipment – The purchasing of equipment for a business is a must, especially since there are always new innovations when it comes to technology. An upgrade might mean in the form of lease, replacement, or straight-up purchase. These can be done with the help of business loans in Kochi.
- Keep The Stock Of Inventory – There comes a time for every business where they cannot keep the whole stock of inventory for the time being. During such a time, when there is enough demand, the businesses can take up loans in order to keep up with the minimum inventory requirements.
- Raise A Working Capital – The daily activities of a business might get hampered and put a barrier in performing the regular operations with efficiency. Such time could be overcome with the help of taking out a business loan in Kochi to help keep up with the working capital requirements of a business.
- Improvement Of Credit Score – One of the best advantages of taking out a loan is that it builds the credit score of a borrower. This ensures a guarantee and makes the borrower eligible for future loans even if they require an amount more than the current business loan.
- Salary Payment Of The Employees – When working capital and inventory funds may get affected, there is a fair chance that the salary payment may also face hurdles. A business loan for such a purpose is very much justified. And you can easily repay it in the coming months.
- Renovation Of The Work Space – Renovation of a workplace is a must in terms of keeping up with the trends and boosting employee morale. Certain security measures may also be included in it.
- Investment In The Infrastructure – Many businesses require a certain standard of infrastructure. This calls for an investment of funds which are generally more than when the business owner has lying around.
What is The Business Loan Eligibility Criteria In Kochi?
Although the unsecured business loans might come as a sigh of relief for some, there are a few other eligibility criteria that are rigid. These have to be fulfilled in order to be eligible for a business loan in Kochi:
- Turnover – The turnover of a business is a must and taken into consideration very seriously. This decides whether you are eligible for a business loan or not. This may even decide if the amount of business loan you are asking for is as per the standard set.
- Cash Flow – The Cash Flow of a business determines if you will be able to repay the business loan amount in full within the set duration.
- Business Vintage – There are different criteria when it comes to business vintage. Some businesses have to be a year old, some have to be 2 years old, and some for even more. This builds the trust of the loan providers in you and your business.
- Credit Score – The credit score should always be 750 and above for any borrower in order to be eligible for a business loan in Kochi.